CUSTODIAN AND ALLIED PLC

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1 CONSOLIDATED FINANCIAL REPORTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER, 2014

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3 STATEMENT OF FINANCIAL POSITION AS AT 30th September, September 31 December 30 September 31 December Assets Note Cash and cash equivalents 4 19,387,193 15,420,426 1,403, ,391 Financial assets 5 7,777,784 7,462,379 66,495 64,597 Trade receivables 6 113, , Reinsurance assets 7 10,259,165 11,041, Deferred acquisition costs 8 771, , Other receivables and prepayments 9 1,105, ,130 59, ,002 Investment in subsidiaries ,949,669 5,949,669 Investment in associates , , , ,891 Investment properties 12 6,508,896 6,309,466 3,057,250 3,055,000 Intangible assets , , Property, plant and equipment 14 2,467,939 2,463,747 18,323 6,249 Statutory deposits , , Total Assets 49,917,971 45,653,813 10,963,861 10,711,799 Liabilities Insurance contract liabilities 16 17,923,615 17,658, Investment contract liabilities 17 3,088,643 3,080, Trade payables 18 1,970, , Other payables 19 1,961,300 1,079, , ,775 Current income tax 20 1,032,646 1,207,501 53,155 89,315 Deferred tax liabilities , , Interest-bearing loans and borrowings 22 1,948,689 1,974, Total liabilities 28,204,701 26,130, , ,090 Equity Issued share capital 23 2,940,932 2,940,933 2,940,932 2,940,933 Share premium 24 6,405,631 6,405,632 6,405,632 6,405,632 Retained earnings 25 6,807,868 5,554,468 1,244, ,264 Contingency reserve 25 4,691,352 4,128, Other components of equity Available-for-sale reserve , , Treasury Shares 26 (140,120) (140,120) (140,120) (140,120) Equity attributable to owners of the parent 21,176,179 19,092,888 10,451,295 10,118,709 Non-controlling interests 537, ,926 Total equity 21,713,270 19,522,814 10,451,295 10,118,709 Total equity and liabilities 49,917,971 45,653,813 10,963,861 10,711,799 1

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5 STATEMENT OF CHANGES IN EQUITY FOR PERIOD ENDED 30 SEPTEMBER 2014 Attributable to owners of the Parent Contin- Other Issued share Share Retained gency Components Treasury Available-forsale Non-controlling For the period ended 30 September 2014 capital premium earnings reserve of Equity Shares reserve Total interests Total equity At 1 January ,940,932 6,405,631 5,554,468 4,128,408 - (140,120) 203,567 19,092, ,926 19,522,812 Profit for the year - - 3,052, ,052, ,165 3,159,859 Change During the period - (236,434) (236,434) (236,434) Other comprehensive income , , ,950 Transfer between reserves - - (799,378) 562, , ,940,932 6,405,631 7,807,785 4,691,352 - (140,120) 470,517 22,176, ,091 22,713,187 Dividend Paid (999,917) - (999,917) - (999,917) At 30 September ,940,932 6,405,631 6,807,868 4,691,352 - (140,120) 470,517 21,176, ,091 21,713,270 At 31 December ,800,813 6,405,632 5,554,468 4,128, ,567 19,092, ,926 19,522,814 For the period ended 30 September 2014 Attributable to owners of the Company Contin- Other Issued share Share Retained gency Components Treasury Available-forsale capital premium earnings reserve of Equity Shares reserve Total At 1 January ,940,932 6,405, , (140,120) 10,119, ,940,932 6,405, , (140,120) - 10,119, Profit or loss for the year 1,331,896 1,331,896 - Dividend Paid (999,917) (999,917) Other comprehensive income - - At 30 September ,940,932 6,405,631 1,244, (140,120) - 10,451,295 At 31 December ,940,932 6,405, , (140,120) - 10,118,709 3

6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 4 Cash and cash equivalents At December At December Cash-in-hand 405 1, Balances held with local banks 1,915,236 3,149,183 1,009,390 37,892 (94,199) 18,059 Balances held in domicilliary accounts 130, ,249 2,399, Balances held with foreign banks 2,829 5,447 2, Reserve with Pension Custodian 176,350 81,869 Placements with banks 17,217,913 12,182,609 12,066,271 1,365, , ,332 Impairment on cash and cash equivalents (56,157) (57,557) (57,557) 19,387,193 15,477,380 15,420,426 1,403, , ,391 Bank placements are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company. All deposits are subject to an average variable interest rate of 11%p.a. (2013: 11%). Reserve with Pension Custodian relates to mandatory cash reserve placed with First Custodians Limited the custodian for our pension subsidiary's managed assets. The carrying amounts disclosed above reasonably approximate fair value at the reporting date. 5 Financial assets At December The Company's financial assets are summarised by categories as follows: le for sal Available-for-sale 3,350,370 2,764,396 3,070,937 66,495 58,929 64,597 maturity Held-to-maturity - Amortised cost 567, ,763 1,408,042-10,000 Fair value through profit or loss 1,248,434 1,551,488 2,921,527 and receiloans and receivables 2,611,884 1,342,917 61,873-6,212 Total financial assets 7,777,784 6,113,564 7,462,379 66,495 75,141 64,597 (a) Available-for-sale Quoted equity securities 520, , ,465 66,495 58,929 64,597 Unquoted securities at cost 2,830,075 2,396,748 2,549, Total available-for-sale 3,350,370 2,764,396 3,070,938 66,495 58,929 64,597 Quoted equity securities were fair valued using quoted prices from the Nigerian Stock Exchange (NSE). Unquoted securities were fair valued using the year's average market price from Over-the-counter market and where not available, a valuation based on average of five years' dividend received at the company's annual rate of return. (b) Held-to-maturity - Amortised cost Federal Government Bonds 511, , ,859 State Government Bonds 609, , ,309 Corporate Bonds 1,302,884 81, , Listed Equities and Others - 1,560,394 Impairment on held-to-maturity financial instruments (2,279) (2,279) (2,279) Total held-to-maturity 2,422,375 2,005,157 1,408, Financial assets - continued At December (c) Loans and receivables Corporate Loans 689,327-1,599,992 Loans to policy holders 20,137 21,991 18,967 Mortgage loans - 10,921 10,921 Other loans 32,409 12,669 40,053 Staff Loans and advances 14,012 13,748 2,961-6,212 Impairment on loans and receivables (11,029) (13,905) (11,029) Total loans and receivables 744,856 45,424 1,661,865-6,212 6 Trade receivables Insurance receivables 724,789 1,126,430 1,238, Impairment on insurance receivables (611,694) (226,299) (1,132,097) 113, , , Reinsurance assets Claims recoverable 233,506 5, , Reinsurer's share of outstanding claims 3,328, ,888 3,328,888 Reinsurance Assets-(Deferred Reinsurance outward) 6,696,771 12,410,921 7,458,996 Reinsurer's share of life insurance funds ,044 10,259,165 12,598,694 11,041, Deferred acquisition costs At 1 January 771, , ,209 Movement during the year ,812 At end of the period 771, , ,

7 9 Other receivables and prepayments Interest Receivable 13,825 95,558 8,361 13,825 10, ,000 Cash advance Deposit for assets 3,526 47, Deposit for shares Due from related parties (110) 82,386 38,226 (2,582) 77,469 2 Other debit balances 1,225,653 4,495, ,136 36,182 24,609 71,419 Prepayment 15, , ,340 11, ,308 6,581 1,258,335 4,833, ,063 59, , ,002 Impairment on other receivables (153,224) (4,160) (251,933) ,105,111 4,829, ,130 59, , , Investment in subsidiaries At December Crusader General Insurance Limited ,584,607 3,584,607 3,584,607 Crusader Life Insurance Limited ,184,717 1,184,717 1,184,717 Crusader Sterling Pensions Limited (Note 11i) ,139, ,533 1,139,460 Crusader Trustees Limited ,885 40,885 40,885 At the end of the year ,949,669 5,692,742 5,949,669 Custodian and Allied Plc is the ultimate holding company with significant equity interests in the subsidiary companies as follows: Subsidiary Equity Interest Segment Place of Incorporation / Activity Custodian and Allied Insurance Limited 100% Property / Casualty Insurance Nigeria Custodian Life Assurance Limited 100% Life Insurance Nigeria CrusaderSterling Pension Limited 76.55% Pension Asset Management Nigeria Custodian Trustees Limited 100% Trusteeship / company Secretarial Services Nigeria The company along with its subsidiaries make up the Custodian Group. Significant Restrictions The Group does not have any significant restrictions on its ability to access or use its assets and settle liabilities that exist within the group Non Controlling interest in subsidiaries The Group does not have any subsidiary that has material non-controlling interest. 11 Investment in associate Investment in Ordinary shares (Note 11i) Leadway Pensure Limited 556, , , , , , , , , ,891 i. The Group has a 25.26% (2013: 25.26%) interest in the ordinary share capital of Leadway Pensure Limited which is involved in the administration and management of Pension Fund Assets. Leadway Pensure Limited is a private entity that is not listed on any public exchange and there are no published price quotations for the fair value of this investment. The reporting date and reporting year of Leadway Pensure Limited are the same as the Group. 12 Investment properties At 1 January 6,309,466 5,695,896 3,835,640 3,055,000 2,705,726 2,701,770 Additions 199,430 1,857,211 2, , Fair value gains - 484, ,319 Reclassifications (Note 14) , Disposals during the year Adjustments At 30 September 6,508,896 5,695,896 6,309,466 3,057,250 2,958,697 3,055, Investment properties - continued i. Investment properties are stated at fair value, which has been determined based on valuations performed by MessrsBarin Epega & Co., who are accredited independent valuers, as at 31 December These valuers are specialists in valuing these types of investment properties. The fair value of the properties has not been determined on transactions observable in the market because of the nature of the property and the lack of comparable data. Instead, a valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied. Valuations are performed on an annual basis and the fair value gains and losses are recorded within the income statement. There are no restrictions on the realisability of investment property or the remittance of income and proceeds of disposal. The Company has no contractual obligations to purchase, construct or develop investment property or for repairs or enhancement. 13 Intangible assets - Group Computer Goodwill software Total At 1 January , , ,837 Additions - 10,269 10,269 Impairment/amortization (161,971) (120,544) (282,515) At 30 September ,990 66, ,591 5

8 14 Property, plant and equipment - Group Freehold property Office equipment Computer equipment Furniture and fittings Motor Vehicles Total Cost/Valuation At 1 January ,072, , , , ,740 3,345,750 Additions 1,030 6,489 10,610 13, , ,196 Disposals - (12,749) (18,334) (23,658) (75,427) (130,168) At 30 September ,073, , , , ,215 3,395,778 Accumulated depreciation At 1 January , , , , , ,003 Charge for the year 27,275 22,276 25,867 20,530 72, ,726 Disposals - (12,448) (17,323) (20,695) (72,425) (122,890) At 30 September , , , , , ,838 Net book value At 30 September ,962, ,285 55,287 79, ,542 2,467,939 At 31 December ,988, ,374 71,555 89, ,419 2,463, Property, plant and equipment - Company Office equipment Computer equipment Furniture and fittings Motor Vehicles Total Cost/Valuation At 31 December ,728 8,671 8,100 19,476 Additions 2, ,800 21,179 Disposals (8,100) (8,100) At 30 September ,027 2,303 9,425 17,800 32,555 Accumulated depreciation At 31 December ,591 3,680 7,425 13,227 Charge for the year ,063 6,979 9,105 Disposals - (8,100) (8,100) At 30 September ,413 1,772 4,743 6,304 14,232 Net book value At 30 September , ,682 11,496 18,323 At 31 December , , Statutory deposits Statutory deposit 850, , Statutory deposit represents the amount deposited with the Central Bank of Nigeria in accordance with section 9(1) and section 10(3) of Insurance Act This is restricted cash as management does not have access to the balances in its day to day activities. Statutory deposits are measured at cost and attract interest rate at a rate determined by the Central Bank of Nigeria. 16 Insurance contract liabilities Outstanding claims 15,689,914 18,328,225 6,955, Provision for unearned premiums - - 8,816, Life fund 2,233,701 1,183,750 1,886, ,923,615 19,511,975 17,658, Investment contract liabilities Welfare 3,017,629 2,743,721 3,009, Annuity 71,014 64,511 71, ,088,643 2,808,232 3,080, Trade payables This represents the amount payable to insurance and reinsurance companies. 1,970, , ,

9 19 Other payables Staff pension 3,780 8,123 4,415 1,622 3,043 1,423 Non Trade payable 202, , , Statutory payables 62,845 48, ,220 60,418 36,904 - Information Technology development levy 9,068 3,424 9, ,801 Deposit against premium 127, Due to related party 306,288 12, ,288 12, ,757 Capital gains tax Unearned income 39, ,703 39,361-9,985 Sundry creditors 1,210,276 9,220, ,532 51,722 3,450,970 36,809 1,961,300 9,407,454 1,079, ,411 3,503, , Taxation Per profit and loss account: Income tax based on profit for the period 661, ,929 30,000 6,000 51,243 Education and ITDL tax for the period - - Underprovision in prior year Capital gains tax , ,929 30,000 6,000 51,243 Deferred taxation - - Tax charge to profit and loss 661, ,929 30,000 6,000 51, Taxation - continued Current income tax Per Balance Sheet: At 1 January 1,291, ,388 89,315 82,297 53,010 Based on profit for the period 416,760 1,051,963 30,000 6,000 51,243 Payments during the period (675,336) (325,850) (66,160) - (14,938) At the end of the period 1,032,646 1,207,501 53,155 88,297 89,315 The charge for taxation has been computed in accordance with the provisions of the Companies Income Tax Act CAP C21 LFN 2004 (as amende). The charge for education tax is based on the provisions of the Education Tax Act CAP E4 LFN Minimum tax requirement was used for the Company for the year as the Company has assessable loss for the year. 21 Deferred tax liabilities At December Losses available for offsetting against future taxable income (83,832) 5,420 (83,832) Fair value gains on investment properties 207, , Accelerated depreciation for tax purposes 392, , , Tax credit on capital allowance (236,863) 104,679 (245,015) , , , Interest-bearing loans and borrowings Borrowings 1,948,689 1,974, On March , Custodian and Allied Insurance Limited issued a subordinated debt of US$ 12.5 million to International Finance Corporation (IFC). The loan is unsecured and interest is payable at the London interbank offered rate plus a margin of 4.5% per annum. The conversion period commences 12 months after the date of first disbursement.during the conversion period, IFC shall have the right to convert all or a portion of the outstanding principal amount of the loan(in Naira equivalent as determined by IFC based on the Naira/Dollar exchange rate published by the CBN) into such number of shares in the capital of the borrower which will give IFC no more than 10% of the issued share capital of the borrower equal to the principal amount of the loan being converted, divided by the conversion IFC may exercise its conversion rights by delivering notice specifying whether the entire loan or a portion of it is to be converted and the date on which the shares are to be issued. delivers the notice of conversion during the conversion period and can exercise the conversion 3 times during the conversion period. IFC shall receive in respect of each share Shares issued to IFC upon any exercise of the conversion right shall be freely transferrable and shall in any respects rank pari-passu with all other shares outstanding on the The shares do not have any dilutive factors as at the reporting date as it is not yet within the conversion period. The conversion price is N3.50 per share plus 5% premium for each year of the conversion period. The exact conversion price over the conversion period is: Year Price The principal amount of US$12.5 million is due for repayment from March The outstanding balance on the IFC loan was valued at N155.7 to a dollar which is the Naira/Dollar exchange rate published by CBN as at the reporting date. 23 Issued share capital and reserves Authorised 7,000,000,000 Ordinary shares of 50k each 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 Issued: 5,881,866,000 Ordinary shares of 50k each 2,940,933 2,940,933 2,940,933 2,940,933 2,940,933 Movement during the year is as shown below: At 1 January 2,940,933 2,940,933 2,940,933 2,940,933 3,792,647 Additional Shares Issued During the year At 31 December 2,940,933 2,940,933 2,940,933 2,940,933 2,940, Share premium At 1 January 6,405,632 2,800,232 6,405,632 2,800,232 2,800,232 Increase during the year Net Movement during the year on combination - 3,605,400-3,605,400 3,605,400 At 31 December 6,405,632 6,405,632 6,405,632 6,405,632 6,405,632 7

10 25 Reserves The nature and purpose of the reserves in equity are as follows: Retained earnings Retained earnings comprise the undistributed profits from previous years, which have not been reclassified to the other reserves noted below. Contingency reserve The statutory contingency reserve has been computed in accordance with Section 21 (1) of the Insurance Act, Cap I17 LFN Other components of equity This reserve contains the equity components of the issued unsecured convertibledebenture stock. The liability components are reflected in financial liabilities. Available-for-sale The fair value reserve shows the effects from the fair value measurement of financial instruments of the category available-for-sale after deduction of deferred taxes. Any gains or losses are not recognised in the statement of comprehensive income until the asset has been sold or impaired. 8

11 26 Gross Revenue Gross Premium Income 14,557,993 12,271, Investment Income 1,746,125 1,765,527 1,460,190 47,163 Fees and Commission 1,814,406 1,685, Other Operating Income 368, ,351 65,518 73,723 18,487,423 16,211,113 1,525, , Operating Expenses Reinsurance Expenses 7,312,850 6,472, Underwriting Expoenses 1,598,031 1,444, Net Claims 2,646,582 3,344, ,557,464 11,261, Net fair value gains/(losses) Fair value gains/(loss) on investment 1,898-1, Realized Gains (Listed Equities and Others) On property and equipment: Profit on disposal of property and equipment Profit on disposal of investment property - - Available for sale: Realised gains on equity securities Management expenses Staff cost 508, ,358 55,764 26,914 Auditors remuneration Amortisation of intangible assets Depreciation on property, plant and equipment 124,898 93,489 9,105 2,443 Impairment loss on insurance receivable Impairment losses on loans and receivables Marketing and administration expenses 115, , Other expenses 2,286,327 1,604,702 98,943 69,850 3,035,255 2,234, ,812 99, Finance costs Interest on convertible debenture stock 74, , , Net gain/(losses) on available-for-sale assets Unrealised gain/(loss) on available-for-sale financial instruments during the year Reclassification adjustments for gain included in the profit or loss Prepayment Other comprehensive income/(loss) for the year, net of tax 266, , , Earnings/(loss) per share Basic earnings/(losses) per share amount is calculated by dividing the net profit or loss for the year attributable to ordinary shareholders by the number of ordinary shares outstanding at the reporting date. The following reflects the earnings/(losses) and share data used in the basic earnings/(losses) per share computations: Net profit/(loss) attributable to ordinary shareholders () Number of ordinary shares in issue as at year end ('000) 3,052,694 1,972,952 1,331,896 (108,362) 5,881,864 7,585,294 5,881,864 7,585,294 Basic earnings/(losses) per ordinary share (kobo) (1) There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements. 9

CUSTODIAN AND ALLIED PLC

CUSTODIAN AND ALLIED PLC CONSOLIDATED FINANCIAL REPORTS FOR THE PERIOD ENDED 31 March 2015 STATEMENT OF FINANCIAL POSITION AS AT 31st March, 2015 31 March 2015 31 Dec 2014 31 March 31 December 20153 2014 2015 2014 Assets Note